Goldman Sachs maintains Weibo bid rating of 25 dollars

Beijing time November 14 Evening News, Goldman Sachs today issued an investment report to maintain the NASDAQ:WB "buy" rating, while maintaining a 25 dollar target share price unchanged.

The following is a summary of the contents of the report:

Third-quarter results: Weibo's third-quarter results exceeded expectations in the 2014 fiscal year. Total revenue of 84 million U.S. dollars, the chain growth of 9%, year-on-year growth of 58%, higher than our expected 4%, compared to the Bloomberg survey analyst's average expectations higher than 5%. Based on non-US GAAP, the US depository shares lost $0.01 trillion, better than our expected loss of $0.02 trillion, and Wall Street's expected loss of 0.03 dollars. Weibo expects revenue for the fourth quarter to reach $102 million trillion to $105 million, with median growth of 45% per cent year-on-year, 2% higher than we expected, and 3% higher than Wall Street expectations.

Analysis：

In this quarter, microblogging commercialization and user traffic continues to rise. Sales revenue increased 50% Year-on-year, the number of active users increased by 36%. According to the main advertising division, the demand for advertising from the automotive industry has grown rapidly.

The number of active users was 76.6 million, which accounted for 46% of the active users in the month, compared with 45% in the previous quarter. The growth of the chain reflects the increase of user interaction frequency, which may benefit from the growth of mobile traffic (78% of the total daily active users).

Alibaba advertisers contributed 27.5 million of dollars in revenue, the chain growth of 24%, accounting for micro-blog Total marketing revenue of 42%.

Non-marketing revenue grew 93% year-on-year, mainly thanks to the development of online/mobile games.

We continue to maintain the "buy" rating of Weibo shares, while maintaining a 25 dollar target share price unchanged. (Li Ming)